SoftBank meltdown: $32 billion wiped out as shares plunge 22% in just 2 days - what went wrong?

SoftBank stock crash 2025: SoftBank’s stock is facing one of its sharpest declines in recent years, with shares plunging 22% over two days and erasing about $32 billion in market value, as per a Kobeissi Letter report. The drop comes amid a global sell-off in technology and semiconductor stocks, as investors grow wary that valuations in the artificial intelligence sector have become overstretched, as per an Analytics Insight report.

SoftBank Stock Suffers a Sharp Two-Day Decline

On Wednesday, SoftBank shares tumbled 14% on the Tokyo Stock Exchange, following a 7% fall on Tuesday, as per the report. The steep losses mirror a global retreat in technology shares that began in the United States, where AI-linked companies faced heavy selling pressure, as per the Analytics Insight report.

SoftBank Stock's Strong 2025 Performance

Despite this sudden downturn, SoftBank remains one of the best-performing stocks of 2025, as per Analytics Insight. The company’s shares have rallied 206% in the past six months and 154% over the past year, reflecting strong investor enthusiasm for its AI-focused strategy and investments, as per the report.


ALSO READ: Google plans to launch solar-powered AI data centres into space by 2027 - here’s how it’ll work

AI Valuation Concerns Trigger a Global Tech Sell-Off

The slide in SoftBank shares follows a broader correction in AI-related stocks worldwide. Investors are growing cautious as many AI companies trade at record-high price-to-sales multiples. The pullback began in the US, where Palantir Technologies fell more than 8% despite reporting better-than-expected earnings, as per the Analytics Insight report. NVIDIA slipped 4%, and AMD dropped 5%, deepening the market’s concerns.

Asian Tech Stocks Follow Wall Street’s Lead

The sell-off quickly spread across Asia’s tech sector. In Japan, semiconductor testing equipment maker Advantest fell more than 8%, while Renesas Electronics dropped 6%, as per the Analytics Insight report.

In South Korea, Samsung Electronics and SK Hynix each declined 6%, though both remain significantly higher year-to-date, up 80% and 210%, respectively, as per the report.

In Taiwan, TSMC shares slipped over 3%, and in China, Alibaba and Tencent fell 3% and 2%, reported Analytics Insight.

ALSO READ: 300 million at risk: Goldman Sachs lists top jobs that AI can replace, but plumbers and electricians may get rich

SoftBank’s AI Investments Amplify Market Pressure

SoftBank’s heavy exposure to AI investments has magnified its losses. The group holds a controlling stake in Arm Holdings, a key player in chip design for mobile and AI computing. Arm’s US-listed shares dropped 4.7% overnight, weighing further on SoftBank’s valuation, as per the Analytics Insight report.

The company’s recent acquisition of Ampere Computing, aimed at expanding its AI data center capabilities, also highlights its deep commitment to the AI sector, now under renewed scrutiny from investors, as per the report.

ALSO READ: Why US market is down today? Key points investors need to take note as Dow, S&P 500 and Nasdaq fall

Market Outlook: Analysts See Long-Term Potential Amid Volatility

Analysts remain confident in SoftBank’s long-term AI positioning, but the recent downturn underscores the risks of being concentrated in a fast-moving and volatile sector, as per the Analytics Insight report. Market attention will now turn to upcoming US economic data and interest rate indicators to determine whether this AI-driven correction will continue or begin to stabilize.

ALSO READ: BTC crash alert: Why Bitcoin price dropped to $107,000 and why experts warn it could fall to $88,000

FAQs

Why did SoftBank stock fall?

SoftBank’s shares dropped due to a global sell-off in technology and AI-related stocks, as investors feared overvalued prices in the AI sector.

How much value did SoftBank lose in two days?

The company lost around $32 billion in market value after its stock plunged 22% in just two trading days.